Correlation Between GlaxoSmithKline PLC and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Calamos Phineus at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GlaxoSmithKline PLC and Calamos Phineus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Calamos Phineus Longshort, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Calamos Phineus and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GlaxoSmithKline PLC with a short position of Calamos Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Calamos Phineus.
Diversification Opportunities for GlaxoSmithKline PLC and Calamos Phineus
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Calamos is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus Longshort and GlaxoSmithKline PLC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GlaxoSmithKline PLC ADR are associated (or correlated) with Calamos Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Calamos Phineus go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Calamos Phineus
Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 2.81 times less return on investment than Calamos Phineus. In addition to that, GlaxoSmithKline PLC is 2.47 times more volatile than Calamos Phineus Longshort. It trades about 0.01 of its total potential returns per unit of risk. Calamos Phineus Longshort is currently generating about 0.06 per unit of volatility. If you would invest 1,504 in Calamos Phineus Longshort on August 29, 2024 and sell it today you would earn a total of 233.00 from holding Calamos Phineus Longshort or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Calamos Phineus Longshort
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Calamos Phineus Longshort |
GlaxoSmithKline PLC and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Calamos Phineus
The main advantage of trading using opposite GlaxoSmithKline PLC and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Calamos Phineus can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calamos Phineus will offset losses from the drop in Calamos Phineus' long position.| GlaxoSmithKline PLC vs. Novartis AG ADR | GlaxoSmithKline PLC vs. AstraZeneca PLC ADR | GlaxoSmithKline PLC vs. Roche Holding Ltd | GlaxoSmithKline PLC vs. Bristol Myers Squibb |
| Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Pimco Rae Worldwide |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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